Sprouts Farmers Market 2015 Annual Report Download - page 58

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50
Financing Activities
Net cash used in financing activities was $106.0 million for 2015 compared to $1.7 million for 2014.
The increase in cash used in financing activities of $104.3 million is related to an increase in the net
paydown of debt of $44.3 million, a $27.3 million decrease of excess tax benefits from the exercise of
stock options, $25.7 million of stock repurchases, $4.5 million decrease in proceeds from the exercise of
stock options, and $1.9 million of deferred financing costs paid in our April 2015 Refinancing.
Subsequent to January 3, 2016, we repurchased an additional 2,431,721 shares of our common
stock for $59.3 million.
Net cash used in financing activities was $1.7 million for 2014 compared to cash used in financing
activities of $63.9 million for 2013. The decrease in cash used in financing activities of $62.2 million is
related to $295.9 million of payments to stockholders and optionholders in 2013, a $76.7 million decrease
in payments on debt instruments, a $29.4 million increase of excess tax benefits from the exercise of
stock options and payments to optionholders, a $7.2 million increase in proceeds from the exercise of
stock options, a $4.2 million payment of IPO costs in 2013 and a $1.4 million payment of deferred
financing costs in 2013. These decreases in cash used by financing activities were offset by $348.5
million of proceeds from the issuance of shares in 2013 and a decrease of $4.0 million in cash from
landlords related to financing lease obligations.
Long-term Debt and Former Credit Facilities
See Note 12 “Long-Term Debt” of our audited consolidated financial statements for a description of
our Credit Facility and our Former Credit Facility (as defined therein).
Contractual Obligations
The following table summarizes our contractual obligations as of January 3, 2016, and the effect
such obligations are expected to have on our liquidity and cash flow in future periods:
Payments Due by Period
Total
Less Than
1 Year 1-3 Years 4-5 Years
More Than
5 Years
(in thousands)
$450.0 million Credit Facility (1)........................ $160,000 $ — $ — $160,000 $ —
Interest payments on $450 million Credit
Facility (2)....................................................... 13,638 3,175 6,349 4,114 —
Capital and financing lease obligations(3) ........ 154,905 27,700 32,977 29,469 64,759
Operating lease obligations(3) .......................... 1,345,206 108,429 243,153 233,934 759,690
Purchase commitments(4) ................................ 236,544 122,741 107,813 5,990 —
Totals(5) ....................................................... $1,910,293 $262,045 $390,292 $433,507 $824,449
(1) The Credit Facility is scheduled to mature and the commitments thereunder will terminate on April
17, 2020, subject to extensions as set forth in the Credit Agreement. Following the closing of the
Credit Facility and the initial borrowing of $260 million, we made a total of $100 million of principal
payments on the Credit Facility, which reduced our total outstanding debt to $160.0 million at
January 3, 2016. These payments are reflected as a reduction to the Credit Facility, in the “4-5
Years” column. See Note 12 “Long-Term Debt” to our audited consolidated financial statements
contained elsewhere in this Annual Report on Form 10-K.
(2) Represents estimated interest payments through maturity on our Credit Facility based on the
outstanding amounts as of January 3, 2016 and based on LIBOR rates and commitment fees that
we locked into from November 23, 2015 through February 23, 2016.
(3) Represents estimated payments for capital and financing and operating lease obligations as of
January 3, 2016. Capital and financing lease obligations and operating lease obligations are
presented gross without offset for subtenant rentals. We have subtenant agreements under which